Which of the Following Statements Relating to the Difference Between

Multiple Choice

Which of the following statements relating to the difference between a share split and a share dividend (bonus issue) are true?
A bonus issue, but not a share split:
I. increases the share capital and reduces the retained earnings.
II. reduces the market price of the shares.
III. requires accounting entries to be made in the ledger.

A) I and III only.
B) I, II and III.
C) II and III only.
D) I and II only.